Protocol/Gauge Name:
Kyo Finance - ETH-pufETH Incentive Pool
Protocol Description:
Kyo Finance is the leading veDEX on Soneium , designed to maximize capital efficiency for liquidity providers while optimizing governance incentives. By leveraging real-time voting, configurable liquidity pools, and LVR protection , Kyo Finance enables seamless trading and liquidity management, with a strong emphasis on enhancing yield opportunities for Liquid Restaking Tokens (LRTs) like pufETH.
Protocol Overview:
Kyo Finance redefines decentralized exchange infrastructure with a governance-driven, emission-optimized model that ensures sustainable liquidity incentives. Our mission is to provide a frictionless, cost-efficient, and user-friendly DEX experience, empowering users to efficiently manage liquidity, vote on emissions, and earn rewards.
With native batch transactions, smart routing, and flexible pool mechanics, users can seamlessly swap, provide liquidity, and direct incentives to high-value pools—including those designed specifically for LRTs.
Target Audience:
- Liquidity Providers: Deposit ETH-pufETH LP tokens to earn trading fees.
- LRT Holders: Provide liquidity to earn additional incentives while maintaining exposure to their staked assets.
- Yield & Airdrop Farmers: Maximize returns through LP deposits and potential future $KYO airdrop eligibility.
Key Features:
- Configurable Pools: Optimized liquidity provisioning for LRTs.
- Batch Transactions & Smart Routing: Reduce costs and improve capital efficiency.
- Real-Time Voting & Emissions Control (Post-TGE): Direct $KYO emissions dynamically.
- Fungible Governance Token (Post-TGE): Simple, fair, and transparent voting mechanics.
- LVR Protection (Post-TGE): Mitigate loss versus rebalancing (LVR) and capture additional yield.
Incentive Proposal:
We propose introducing incentives for users who provide liquidity to the ETH-pufETH pool on Kyo Finance. With LRT adoption accelerating in the Soneium ecosystem, this initiative enhances capital efficiency for pufETH holders while driving deep, protocol-owned liquidity on Kyo.
Through this incentive program, we aim to:
- Deepen pufETH liquidity within the Soneium ecosystem.
- Reward liquidity providers with optimized yield opportunities.
- Encourage sustainable participation through attractive incentives and potential Kyo Credit-based airdrop eligibility.
Distribution Method:
Once the ETH-pufETH pool is deployed, users can supply liquidity and earn:
- Trading Fees – Generated from all swaps within the pool.
- Kyo Credit – Potential eligibility for future $KYO airdrops at TGE.
- Puffer Incentives – Additional rewards provided by Puffer.
Incentives will be distributed based on liquidity contribution, calculated using deposit amount and duration. pre-TGE, merkl(or merkl-like protocol) will be used and post-TGE it will be provided as a bribe on the gauge.
Pool Details:
- Recipient Chain: Soneium
- Pool Address: To be deployed following initial liquidity seeding.
Incentive Impact Statement:
Incentivizing ETH-pufETH liquidity providers will enhance trading efficiency, increase adoption, and strengthen overall liquidity in the Soneium ecosystem. This initiative aligns with Kyo’s vision to establish a scalable and sustainable veDEX, empowering liquidity providers with optimized yield opportunities and governance control.
By offering structured rewards and leveraging real-time emissions control, this program will:
- Encourage deep liquidity formation with pufETH.
- Attract new participants to Puffer Finance & Kyo Finance.
- Expand pufETH’s exposure and yield potential for Soneium users.
Eligibility Verification & Resources:
Kyo Finance App: https://kyo.finance
Docs: https://docs.kyo.finance
Audits: Conducted by Omniscia , Beosin
Contact Information:
Twitter (X): x.com
Discord: Kyo Finance